Standard Chartered’s Eric Robertson said central banks must recognise a shift to structurally higher inflation, which reduces monetary-policy flexibility and leaves less buffer against supply shocks. He warned that a weather event such as El Niño would be minor with a 1% baseline inflation, but if countries are struggling to keep inflation at about 3% or below, simultaneous oil and food supply shocks would have amplified effects. That poses a policy dilemma because rate rises cannot increase com

Standard Chartered’s Eric Robertson said central banks must recognise a shift to structurally higher inflation, which reduces monetary-policy flexibility and leaves less buffer against supply shocks. He warned that a weather event such as El Niño would be minor with a 1% baseline inflation, but if countries are struggling to keep inflation at about 3% or below, simultaneous oil and food supply shocks would have amplified effects. That poses a policy dilemma because rate rises cannot increase commodity supply or offset weather-driven supply disruptions.